Business and Economy Review, no. 24

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Data publicării: Marți, 23 Octombrie 2007

Accesări: 6460

Important changes took place in the monetary policy in September, which is one of the main area of analysis in this edition of the Business and Economy Review. The National Bank of Moldova's Administration Board, decided to increase its basic rate from 13.5 to 16 percent. This is the sharpest increase for the past 7 years in the NBM's basic rate. The last time when the interest rate was quoted at 16 percent was in September 2001. In spite of these measures, it is less likely that consumer price index will have a growing rate within the limits set by the National Bank of Moldova. The factors which contributed to the inflation burst in July – September 2007 were the strong money supply and the rising level of consumption demand, which is financed through bank credits. It is forecasted that these factors will not disappear in the near future. On the other hand, despite the growing money inflows, in the relative terms the current account balance is worsening. In future the monetary flows may not compensate the strong pressure on Moldovan leu, which in the long term can depreciate against the US dollar.

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